The oil giant bounces back from a rough end to 2017 thanks to the help of an absolute gusher in the Permian.
While Devon Energy (NYSE:DVN) limped into 2018 after running into some production problems at the end of 2017 and bad weather to start this year, it was able to put those issues in the rearview mirror by the end of the first quarter. That’s evident by looking over its results for the period where the oil giant beat its production guidance, putting it on track to exceed its full-year forecast. The company did that by drilling some of the best wells ever completed in the legendary Permian Basin.
While Devon Energy’s total output was just above the mid-point of its guidance range, oil production came in toward the top end of the forecast at 251,000 barrels per day thanks to strong drilling results. Fueling that performance was an absolute gusher in the Permian Basin where two wells in the Delaware side combined to achieve a stunning initial 24-hour production rate of 24,000 BOE/D. They were the highest-rate wells ever brought online in the region’s nearly 100-year history. Those were just two of several high-rate wells that Devon brought online in the Delaware and STACK shale plays in the quarter.
Another highlight was the company’s Showboat project, which came online 40 days ahead of schedule thanks to efficiency gains. The company achieved a 30% improvement in drill time and doubled the number of completion stages per day versus prior activity in the area. Those operating improvements enabled Devon to save $1.5 million per well. Continue reading…